- NY Credits : 2.0
- TX Credits : 2.0
- IRS Enrolled Agent Credits : Federal Tax/Tax Related Matters - 2.0
Generally, an S corporation is not taxed at the corporate level. Rather, it passes through items of income, loss, deduction, or credit to its shareholders who report those items on their personal returns. A shareholder's stock basis increases when income is passed through by the corporation. It decreases when losses or deductions are passed through, and when nontaxable distributions are received. A distribution may include both nontaxable and taxable amounts which are determined by referring to the shareholder's stock basis, as well as to various tiers or levels of distributions. All of these items affect a shareholder's stock basis which is calculated at the end of each of the corporation's tax years. This course covers pass-through, stock basis, and distributions. This course is most beneficial to professionals new to S corporations who may be at the staff or entry level in organization but also for a seasoned professional with limited exposure to S corporation pass-through and stock basis adjustments.
Included with subscription(s):
Upon successful completion of this course, the user should be able to:
identify how S corporation income, loss, deduction, and credit items are taxed;
recognize the annual adjustments required to maintain a shareholder's stock basis; and
determine the effect of distributions on the S corporation and shareholders.